There are several problems with hard mode of DF:
1. It's 7 man dungeon so finding a party takes longer and there are more people to share loot with
2. The loot is inadequate to the number of players
3. Players in party 2 are not receiving boxes with new gear
Personally I would like to see this dungeon removed and materials for radiant accessories moved to Bahaar, GVH or AQ but since some people may not like this the best option is to change it to 5 man version and increase drop slightly.
Also please don't add new 7 man dungeons as permanent additions, only do it for limited time events or better do not do it at all.